Ethereum (ETH) showed a notable performance throughout March. The second largest cryptocurrency hit $4,000 twice and seemed ready for lift-off to a new all-time high (ATH) while the whole crypto market soared.
Quarter one (Q1) 2024 closed with important achievements for the crypto community. However, as Q2 started, Bitcoin began a correction that dragged Ethereum and the rest of the crypto market.
Are Ethereum Bulls In Problems?
The king of altcoins has registered red numbers for the past two days. ETH’s momentum recovery after the market slowdown was halted after the token followed BTC and the rest of the market.
On Monday, crypto analyst Ali Martinez expressed concerns about Ether’s future. He suggested investors should “always be prepared for the best and the worst” scenario.
Martinez deemed “breaching the $3,400 support level” as the most brutal scenario for the second-largest cryptocurrency. This move would confirm a bear pennant pattern that formed on the daily chart.
If confirmed, the bearish formation could trigger ETH’s price to face a “major correction,” according to the analyst. The correction could make Ether’s price dip to $2,800.
Martinez reaffirmed his analysis after Ethereum continued to dip in the early hours of Tuesday. After the token fell under the support level mentioned above, the analyst asserted that falling under $3,460 was a problem for the bulls.
#Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further $ETH correction toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM
— Ali (@ali_charts) April 2, 2024
“Given the lack of support,” failing to regain this support zone could trigger further corrections for ETH that could go even lower than the previously forecasted $2,800.
According to the In/Out of the Money Around Price (IOMAP) chart shared by Martinez, Ethereum shows a potential price support between $2,846 and $2,905, with over 1.64 million ETH bought by 1.99 million addresses at this level.
Nonetheless, the chart also displays that an ETH rally could face resistance at $3,457 and $3,557.
ETH’s Follows Bitcoin’s Correction
Ethereum behaved no differently than the rest of the crypto market. Bitcoin’s correction saw its price drop from the $70,000 mark to hover between the $65,000-$64,000 price range.
The flagship cryptocurrency shredded 7.1% of its price in the last 24 hours. Similarly, Ethereum’s red numbers show a 7.4% drop from yesterday and a 7.5% decrease on Monday.
April fools shakeout to start the quarter.
Time to get to work. Let's get this bread boys 🤝 pic.twitter.com/0458Qvrr4F
— Jelle (@CryptoJelleNL) April 1, 2024
In the weekly and monthly timeframes, the king of altcoins has decreased by 9.2% and 3.4%. However, its 3-month chart shows green numbers, with a positive 39.74% increase since 2024 started.
Despite the negative performance, Ethereum’s daily trading volume increased a remarkable 80.80%, with over $22.5 billion traded in the last 24 hours, suggesting a rise in market activity. At the time of writing, ETH was trading at $3,283.
Ethereum is trading at $3,238 in the one-day chart. Source: ETHUSDT on Tradingview.com